If a Business Retains Someone to Provide Services, That Person

question 86

Essay

If a business retains someone to provide services, that person may either be an employee or be self-employed (i.e., independent contractor).
a. What are the tax advantages to the business of having the service provider classified as self-employed?
b. What are the advantages and disadvantages to the service provider of self-employed status?

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Definitions:

E-business

Pertains to the conduct of business processes on the internet, including buying and selling products, services, and managing company operations.